SUN LIFE ASSURANCE.
The Sun Life Assurance Society, which confines its business to the United Kingdom, makes an excellent showing in its latest annual report, the new business figures having reached a fresh high record, and Funds and Premium Income also advanced, the Funds rising by no less than £6,750,000, and now standing at over £32,000,000. The larger Funds produced a rise in Interest Income from £1,016,799 to £1,341,618, and the net interest earnings on the fund were at the rate of £4 15s. 10d. per cent. after deduction of income tax, as com- pared with £4 12s. 8d. per cent. in the previous year. As the company only assumes 8 per cent. interest in its valuation of policy contracts, there is thus a very substantial margin of profit over interest. The company values its liabilities and distributes bonuses quinquennially, the last valuation having been made as at December 81st, 1926. The two years of the current quinquennium therefore, have opened in most promising fashion both for policy holders and shareholders. As the company only distributes its profits once in five years, the dividend rate usually changes but once in five years, and after 1926 the dividend rate went up from 25s. to 82s. per share per annum, free of income tax. That a further increase is looked for in 1931 is evident from the price of the £10 shares which stand at 60, yielding only 3 per cent., free of income tax which, however, is equal to £3 13s. 4d. per cent. gross.
Previous page
